Osisko's BC Gold Bet: A 70,000-Meter Hunt for Buried Treasure

MONTREAL, QC – December 08, 2025 – Osisko Development Corp. (NYSE: ODV, TSXV: ODV) has officially launched one of British Columbia's most ambitious gold exploration campaigns in recent memory, committing to a fully-funded 70,000-meter drilling program at its 100%-owned Cariboo Gold Project. The multi-year initiative, already underway with two drill rigs and set to expand to six, represents a major strategic push to unlock the district-scale potential of a historic mining camp and significantly expand the resource base of its permitted, 'shovel-ready' flagship asset.

This is not a tentative search for mineralization but a calculated, large-scale offensive aimed at defining the next chapter for the Cariboo region. By targeting deep extensions of the known deposit and prospecting vast, underexplored territories nearby, Osisko is betting that the project's existing 2.07 million ounces of probable gold reserves are just the beginning. As the drills begin to turn through the end of 2026, the industry will be watching closely to see if this historic gold belt is poised for a modern renaissance.

The Strategic Blueprint for Growth

The 70,000-meter campaign is a multi-pronged attack designed to test distinct geological theories and unlock different types of value. The program is systematically divided among several high-priority targets, each with its own strategic objective.

The first key target is Cariboo Deep. With approximately 10,000 meters of drilling planned, this initiative aims to prove that the existing high-grade gold deposit extends significantly further down than currently defined. The current mineral reserves are based on drilling that averages a depth of only 350 meters. Osisko's geological modeling suggests the mineralized structures continue, and this program will test that hypothesis with deep drill holes reaching down to 800 meters. Success here could dramatically increase the scale and mine life of the planned underground operation within the existing permitted footprint.

Simultaneously, the company is allocating the largest portion of the program—around 20,000 meters—to Proserpine Mountain, a high-priority regional target located 4-10 kilometers southeast of the main deposit. Previous work at Proserpine suggests the presence of a potential open-pit target, a style of mining that could complement the planned underground operation and significantly alter the project's overall economics. This phase of drilling is designed to confirm the scale and continuity of mineralization at the Warspite, Victory, and Wilkinson targets within the Proserpine area.

Rounding out the initial focus are Barkerville Mountain and other regional prospects. Drilling at Barkerville Mountain will test the so-called 'Lowhee-KL Gap Zone,' a 1.4-kilometer stretch of prospective ground located immediately adjacent to the existing resource. This effort is a direct hunt for new, near-surface discoveries that could be quickly integrated into the broader mine plan. Further afield, targets like Cunningham and Yanks Peak will see initial exploration drilling, underscoring the company's district-scale approach to proving up the potential of its vast 186,740-hectare land package.

Chris Lodder, President of Osisko Development, stated, "We're keen to launch a solid exploration program... that will have multiple exploration drill rigs operating through the end of 2026... exploration drilling below the existing Cariboo deposit offers an opportunity to set the stage for potential resource growth at depth beyond currently defined mineral resources within the permitted footprint."

De-Risking a Billion-Dollar Project

An exploration campaign of this magnitude is only possible because of the significant de-risking milestones Osisko has achieved over the past two years. The 'shovel-ready' status of the Cariboo Gold Project is not just a marketing term; it is the result of a rigorous and successful permitting journey. In late 2024, the project received its critical Mines Act and Environmental Management Act permits from the province of British Columbia. This followed the issuance of its Environmental Assessment Certificate in late 2023, making Cariboo the first project ever to be fully assessed and approved under B.C.'s modernized 2018 Environmental Assessment Act.

Equally important is the 'fully-funded' nature of the campaign. The company's financial disclosures from Q3 2025 show a robust treasury, with approximately C$401.4 million in cash and cash equivalents as of September 30, 2025. This strong financial position was bolstered by drawing on a US$450 million financing facility and completing private placements that generated over C$360 million in gross proceeds. This financial muscle ensures the 70,000-meter program can be completed without interruption, allowing the exploration team to follow up on promising results and build momentum through 2026, when a preliminary progress update is expected.

Balancing Ambition with Responsibility

Advancing a major mining project in the 21st century requires more than just geological potential and financial backing; it demands a firm commitment to environmental stewardship and community partnership. The approval of the Cariboo Gold Project under B.C.'s stringent new environmental laws came with 22 legally binding conditions designed to mitigate impacts and ensure local benefits.

These conditions are comprehensive, covering everything from limiting truck traffic and noise to implementing strict policies for work camps. Osisko is mandated to prioritize local hiring, with a target of 75% of the workforce coming from the region. The company is also responsible for securing a new clean drinking water supply for the nearby District of Wells and remediating areas affected by historical mining activities, turning a modern operation into an opportunity to heal past environmental scars.

Central to this process has been engagement with Indigenous nations. The project lies within the traditional territories of the Lhtako Dené Nation, Xatśūll First Nation, and Williams Lake First Nation. Osisko has secured consent and signed participation agreements with the Lhtako Dené and Williams Lake First Nations. However, engagement remains ongoing with the Xatśūll First Nation, which has raised concerns regarding potential impacts on the local caribou herd and other cultural issues. Osisko has stated its commitment to continued, good-faith consultation to address these concerns, highlighting the complex but essential nature of building lasting partnerships for resource development.

Riding the Golden Wave

Osisko's aggressive exploration push is timed to coincide with a powerful bull market for gold. With forecasts for 2026 seeing the precious metal push from its current highs toward US$4,000 per ounce, the economic case for discovering and developing new gold deposits has rarely been stronger. This favorable market backdrop dramatically enhances the potential return on Osisko's investment.

The project's 2025 Feasibility Study demonstrates this leverage clearly. At a base-case gold price of US$2,400/oz, the project carries a robust after-tax net present value (NPV) of C$943 million. However, at a gold price of US$3,300/oz—well within the range of current market forecasts—the project's after-tax NPV more than doubles to an impressive C$2.1 billion, with the internal rate of return jumping from 22.1% to 38.0%.

This high sensitivity to the gold price means that every new ounce of gold discovered by the 70,000-meter drill program carries significant potential value for the company and its shareholders. By launching this campaign now, Osisko is not only working to expand its resource base but is also positioning itself to capitalize on a generational bull market in gold, transforming the Cariboo Gold Project from a well-defined plan into a cornerstone asset for Canada's next intermediate gold producer.